Economic data

Economic data or economic statistics may refer to data (quantitative measures) describing an actual economy, past or present. These are typically found in time-series form, that is, covering more than one time period (say the monthly unemployment rate for the last five years) or in cross-sectional data in one time period (say for consumption and income levels for sample households). Data may also be collected from surveys of for example individuals and firms[1] or aggregated to sectors and industries of a single economy or for the international economy. A collection of such data in table form comprises a data set.

For time-series data, reported measurements can be hourly (e.g. for stock markets), daily, monthly, quarterly, or annually. Estimates such as averages are often subjected to seasonal adjustment to remove weekly or seasonal-periodicity elements, for example, holiday-period sales and seasonal unemployment.[5]

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Good economic data are a precondition to effective macroeconomic management. With the complexity of modern economies and the lags inherent in macroeconomic policy instruments, a country must have the capacity to promptly identify any adverse trends in its economy and to apply the appropriate corrective measure. This cannot be done without economic data that is complete, accurate and timely.

Increasingly, the availability of good economic data is coming to be seen by international markets as an indicator of a country that is a promising destination for foreign investment. International investors are aware that good economic data is necessary for a country to effectively manage its affairs and, other things being equal, will tend to avoid countries that do not publish such data.

The public availability of reliable and up-to-date economic data also reassures international investors by allowing them to monitor economic developments and to manage their investment risk. The severity of the Mexican and Asian financial crisis was made worse by the realization by investors that the authorities had hidden a deteriorating economic situation by slow and incomplete reporting of critical economic data. Being unsure of exactly how bad the economic situation was, they tried to withdraw their assets quickly and in the process caused further damage to the economies in question. It was the realization that data issues lay behind much of the damage done by these international financial crises that led to the creation of international data quality standards, such as the International Monetary Fund (IMF) General Data Dissemination System (GDDS).[10][11]

Inside a country, the public availability of good quality economic data allows firms and individuals to make their business decisions with confidence that they understand the overall macroeconomic environment. As with international investors, local business people are less likely to overreact to a piece of bad news if they understand the economic context.

Tax data can be a source of economic data. In the United States, the IRS provides tax statistics,[12] but the data are limited by statutory limitations and confidentiality concerns.[13]